Lexmark (LXK) slashed earnings targets for its second and third quarters, citing soft results in its inkjet printer line.
The Lexington, Ky., printer company said it expects to make 62 to 67 cents a share for the second quarter, excluding restructuring-related benefits, and about a nickel a share for the third quarter. Analysts surveyed by Thomson Financial were looking for an 85-cent profit for the second quarter ended last month and an 81-cent profit for the third quarter ending in September.
Lexmark said it expects revenue to fall 2% from a year ago in the second quarter. The company had predicted in April that revenue would fall in the low- to mid-single-digits percentagewise.
Lexmark blamed "less than expected inkjet supplies revenue, lower hardware average unit revenue driven by aggressive pricing and promotion, some greater than expected product costs, and greater than expected branded inkjet unit growth." It said the same factors will hit the third quarter.
The warning is the latest in a string of earnings setbacks at Lexmark. In April, the company missed its first-quarter earnings target and guided lower for the rest of the year, citing a tough pricing environment.